Man­u­fac­tur­ing de­clines by 1.1%

Sun.Star Davao - - BUSINESS -

THE de­crease in the pro­duc­tion of pe­tro­leum prod­ucts and chem­i­cals caused a slight re­duc­tion in the man­u­fac­tur­ing out­put in July 2017.

In the Monthly In­te­grated Sur­vey of Se­lected In­dus­tries (MISSI) of the Philip­pine Sta­tis­tics Author­ity, a Neda-at­tached agency, the man­u­fac­tur­ing sec­tor’s Vol­ume of Pro­duc­tion In­dex (Vopi) de­clined by 1.1 per­cent (%) in July 2017, from a growth of 6.8% in the pre­vi­ous month and 12.1% last year.

The Value of Pro­duc­tion In­dex (Vapi) like­wise con­tracted by 2% but still re­mained in pos­i­tive ter­ri­tory with a three-month av­er­age growth rate of 3.3%.

The de­creases were due to the lower pro­duc­tion of pe­tro­leum prod­ucts and chem­i­cals, post­ing a de­cline of 1.1% and 52.6%, re­spec­tively. Such were caused by a large de­cline in the pro­duc­tion of fuel prod­ucts and the lin­ger­ing ef­fects of main­te­nance ac­tiv­i­ties un­der­taken in the first half of 2017.

None­the­less, So­cioe­co­nomic Plan­ning Sec­re­tary Ernesto M. Per­nia re­mained op­ti­mistic of the growth of man­u­fac­tur­ing in the fourth quar­ter.

“We ex­pect higher man­u­fac­tur­ing out­puts in the com­ing months as we ex­pect an in­crease in con­sumer de­mand dur­ing the hol­i­day, trans­lat­ing to higher pro­duc­tion in vol­ume and sales,” the Neda Chief said.

He added that strong macroe­co­nomic fun­da­men­tals, ac­cel­er­a­tion of in­fra­struc­ture de­vel­op­ment projects, and in­creased in­vest­ment will fur­ther pro­vide ad­di­tional sup­port to man­u­fac­tur­ing growth.

Per­nia also rec­om­mended to ex­pand ex­ist­ing man­u­fac­tur­ing en­ter­prises and at­tract for­eign and lo­cal in­vest­ments in the coun­try­side to sus­tain man­u­fac­tur­ing growth.

“We need to ex­pand our pro­duc­tion ca­pac­ity to take ad­van­tage of strong do­mes­tic de­mand and ben­e­fits from free trade agree­ments. In line with this, ef­forts must be given to ac­cel­er­ate the im­ple­men­ta­tion of in­fra­struc­ture projects and en­hance the qual­ity and cost-ef­fec­tive­ness of man­u­fac­tur­ing-re­lated ser­vices to en­sure sus­tained growth,” he said.

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.